Wall Street is up 166 points. Besides of the bearish signal in place since last week, the bulls seen to be very optimist about the future and have come out today to show they support for an economy that isn’t sure where is heading until fiscal cliff is resolved.
Obama Wall Street supporters, healthcare, green energy, real estate, construction are doing reasonably well as well as Romney supporters, oil and gas, financial institution, weapons manufacturers. Financial institutions are betting that some of the new regulations impose on the financial system after the financial crisis will be overlooked or removed.
Investor and traders who don’t care who is in power, should be aware off today’s rally. Which in fact, could be finish by the end of the day. In the other hand, today’s rally which could be messing up with the bears that had short position in place, could be a last push for the top to reach the 14000 which is a very ambitious target without a pull back.
So a pull back that was expected, could now be smaller than firstly thought. The bearish signal that was in place is now fairly mixed up, so patience and/or stepping to the sideline could be a good position.
Support of both party are battling today’s, but the majority of voters are not aware of what Wall Street wants.
Financial Markets around the world are all up gaining small amounts. The us election would probably have a bigger influence in the Chinese market. A Romney win could translate in higher economic tension between China and Us.